Should I Charge Tax On Repairs?

This guidance document is informational in nature but is binding on the Nebraska Department of Revenue (DOR) until amended. A guidance document does not include internal procedural documents that only affect the internal operations of DOR and does not impose additional requirements or penalties on regulated parties or include confidential data or rules and regulations made in accordance with the Authoritative Procedure Deed. If yous believe that this guidance document imposes additional requirements or penalties on regulated parties, y'all may request a review of the document.

This guidance document may change with updated information or added examples. DOR recommends y'all exercise not print this document. Instead, sign up for the subscription service at revenue.nebraska.gov to get updates on your topics of interest.

Pest Control Services

Are pest command services purchased by a contractor and performed at a construction site subject to taxation?

Yes Charges for pest control services performed earlier, during, or subsequently construction are field of study to tax. The contractor cannot purchase such services revenue enhancement-complimentary (for resale) because this service is not considered contractor labor for sales revenue enhancement purposes. Nor can such services be purchased tax-free under aPurchasing Agent Appointment, Class 17, issued past the governmental unit of measurement or exempt entity.

Can I buy my chemicals and other supplies for resale?

No. You are the consumer of all chemicals and supplies used in providing your pest command services and must pay sales or use tax on all purchases of materials, supplies and equipment used to provide your service.

I provide pest control services to farmers and ranchers. Are these services subject to sales revenue enhancement?

No. Pest control applications fabricated to crops or land used in commercial agriculture are not subject to sales tax. This includes applications made to grain storage or livestock facilities on the subcontract. All other pest control applications on the farm are taxable.

Are pest command services contracts which are in effect prior to October 1, 2002, subject to tax?

Sales revenue enhancement applies to all payments for pest control services recorded equally a sale on and later Oct 1, 2002.

Are charges for a unmarried application of a production containing both insecticide and fertilizer bailiwick to tax?

Yep. Charges for the single application of a blended product containing both pest control chemicals and fertilizer or weed control chemicals are subject to revenue enhancement. A retailer is non allowed to collect tax on just a portion or percent of the charge (for insecticide) when both products are commingled in a single application.

Is someone who inspects and treats copse for emerald ash borer infestation providing a taxable pest control service?

Aye. A person who inspects and treats trees for infestation of emerald ash borers is providing taxable pest control services. Retailers of pest command services must hold a Nebraska sales and use tax permit and collect the Nebraska and applicative local (metropolis) sales tax on charges for these services. These charges must be shown on an invoice separate and apart from your non-taxable charges, otherwise the entire invoice amount is subject field to sales taxation. Retailers have certain administrative responsibilities for collecting and remitting sales tax. These responsibilities are summarized in our Data Guide titled " Nebraska and Local Sales Tax."

Building Cleaning and Maintenance

Is structure site clean-upwardly field of study to tax?

Yes. Charges for the make clean-upwards of a building under construction are subject to revenue enhancement. Contractors cannot purchase such services tax-free (for resale) from a third party. This service is non considered contractor labor for sales tax purposes. Nor can such services be purchased tax-costless under a Purchasing Agent Appointment, Course 17, issued by the governmental unit or exempt entity.

Are charges to clean a furnace, air conditioner, heat pump, duct work, or drains taxable?

Aye. Building cleaning services includes any work washed to make clean a fixture that has been annexed to real estate. This includes cleaning a furnace, air conditioner, rut pump, duct piece of work, sewer, and drains located in or fastened to a building. Such piece of work in non considered contractor labor.

What happens when a contractor responds to a service telephone call to repair a furnace blower and also takes a few minutes to change out the furnace filter?

An Option 1 contractor must collect sales tax on the total amount charged for the furnace filter and parts and will not collect any revenue enhancement on his or her labor accuse provided information technology is separately stated. Option two and 3 contractors will pay or remit tax on the furnace filter and repair parts according to their option and will not collect any revenue enhancement on the amount charged to repair the furnace.

Is the charge to clean a edifice later on a fire or inundation subject to tax?

Yeah. Charges forcleaning the interior or outside of a building and its contents after a fire, flood, or similar disaster are bailiwick to tax. Labor charges to repair or replace part or all of the building are non taxable.

Is the accuse to winterize an undercover sprinkler system subject field to tax?

No. Charges for services such every bit the blowout and draining of the underground pipes and sprinkler heads are not taxable.

Can I buy my cleaning supplies tax free?

No. You lot are the consumer of all supplies used in providing your cleaning and maintenance services and must pay sales or utilise tax on all purchases of materials, supplies and equipment used to provide your service.

Does taxable building cleaning and maintenance include holding attached to the outside of a edifice?

Yep. Examples would be an awning, a sign, or an attached deck.

Does edifice cleaning and maintenance service include picking upward containers of grease from a restaurant?

No. The accuse to pick-upward and dispose of or have the containers of grease to a recycling center is not taxable.

Does building cleaning and maintenance service include removing grease from a collection pit located in a building?

Yes. The charge for removing the grease from the collection pit is taxable.

If I merely charge to inspect a home and its heating and air conditioning systems (HVAC) related to the purchase of a domicile, am I required to collect sales taxation on such charges?

No. These inspection charges are normally just to determine if the heating and ac systems are operating properly.

However, if the inspectorboth inspectsand cleans the HVAC system and itemizes the unlike charges, only the charge to clean the HVAC system is taxable. If one corporeality is charged to both audit and make clean the HVAC system, the entire charge is taxable.

If the inspector inspects the HVAC system and determines information technology needs to be repaired and performs the repair work, the inspector is considered to be a contractor for the repairs performed. As a contractor, the inspector is required to be registered in the Contractor Registration Database, and charges for materials and labor to repair the HVAC system will be taxed in the post-obit manner:

• An Selection i contractor must collect sales tax on the total amount charged for any materials and will not collect whatever tax on separately stated charges for the inspection and repair labor. If the charges are not separately stated, the entire charge is taxable.
• An Option 2 or Option 3 contractor volition non collect any sales tax on the amount charged to the customer.

Installation or Awarding of Tangible Personal Property

Is the application of agronomical chemicals to state or crops on the subcontract (commercial agriculture) or to food producing animals a taxable awarding service?

No, the agricultural chemicals are exempt in this situation. See Sales and Use Revenue enhancement Regulations one-061 and 1-063.

I install a built-in dishwasher for my client. Is the installation accuse subject to sales revenue enhancement as a taxable installation service?

No, since a built-in dishwasher is considered annexed to real estate,  normal installation labor rules for personal property do not apply. The person "installing" the dishwasher is a contractor. Contractors must elect between three options  to testify how they volition collect sales taxation (Pick 1) pay sales tax (Pick 2), or remit use tax (Selection 3) on building materials that are annexed. The contractor'southward labor is more often than not not taxable. An pick i contractor must  collect sales tax from its customer on the selling cost of the dishwasher. No sales taxation will be charged on the installation labor every bit long as the labor charge is separately stated from the cost of the dishwasher.

Option 2 or 3 contractors do not separately accuse tax on their customer'south invoice for the dishwasher or their installation labor. An Choice 2 contractor pays sale tax to its supplier when purchasing the dishwasher, and an Option 3 contractor remits use tax to DOR on its purchase price of the dishwasher. Come across Reg-1-017, Contractors for more than data.

Motor Vehicle Towing

If I tow a wrecked vehicle from the crash site to a holding facility in Nebraska, am I required to charge sales tax on the amount charged for towing?

Yes. The charge is taxable regardless of who you bill, even if the wrecked vehicle is later on totaled by the insurance company.

If you are subsequently hired to tow this wrecked vehicle from the property facility to the save chiliad, and you charge a dissever fee for this tow, such accuse is not bailiwick to sales revenue enhancementprovided the salvage yard is a licensed motor vehicle dealer. The salvage yard can upshot a Nebraska Resale or Exempt Sale Certificate, Course thirteen, to y'all when this vehicle will get an inventory vehicle of the save yard.

Is a wrecked or totaled vehicle considered an auto hulk or crushed vehicle?

Tin I purchase motor vehicle towing services for resale?

Yes, but but if your business is engaged in motor vehicle towing and yous "farm out" or subcontract a tow job to some other towing company. You may requite that company a resale certificate to avoid paying sales tax when that company bills yous. You will and so collect tax on the full amount yous accuse your customer for the towing service.

I own an auto engine repair shop. Nosotros have an outside service tow for us. We pay the tow visitor for the tow, plus tax. Then we charge our customer a mark-up for the tow. Practice we collect sales tax on this marked-up accuse?

No. Since you are not providing towing services to your client (you are only repairing the vehicle), you lot should not exist charging tax to the customer for "towing." You can recoup the toll of the tow (including tax) paid to the tow visitor by passing this cost on to your customer. Your bill to your customer should include the charge for the tow along with any other labor charges. In that location will be no dissever tax collected past you on the tow charge, including any marker-up.

Are towing services provided for under a warranty or maintenance understanding subject to revenue enhancement?

What if the towing charge is paid for by an insurance company or will exist reimbursed past insurance?

The amount charged for vehicle towing is taxable.

Is the sale of a warranty or service understanding that covers towing taxable?

Yeah. Although whatsoever charge for actual towing services performed under such an understanding would non exist taxable. All the same, if the owner of the motor vehicle pays for towing but is later reimbursed by an insurance company, the accuse for towing is taxable.

Is a motor society membership taxable as a service understanding for towing?

No, as long as the motor social club membership provides other services and benefits besides towing.

Is a motor club taxable when it pays for towing a member's vehicle and on what corporeality do I collect sales taxation when I pecker the motor club?

The charge to the motor club for towing is taxable. The taxable amount is the amount the motor club pays for the tow.

Does towing include winching or uprighting a motor vehicle?

Yeah. Motor vehicle towing consists of towing, pulling, transporting, winching, or uprighting an overturned motor vehicle. Therefore, the accuse to winch a motor vehicle out of a ditch or upright an overturned vehicle past using a winch, air numberless, or a crane is taxable.

Are mileage charges for towing a motor vehicle part of gross receipts and taxable?

Yes. The mileage accuse for towing a motor vehicle is taxable, fifty-fifty if the mileage accuse is separately itemized or separately invoiced.

Is the charge for towing a repossessed motor vehicle taxable?

Yes, with the exception of towing charges billed to a visitor that holds a motor vehicle dealer's license, finance company license, auction dealer license, or wrecker or relieve dealer license issued past the Nebraska Motor Vehicle Industry Licensing Board (Board) for purposes of delivering the motor vehicle to the license holder's inventory.  The towing visitor'due south records must include documentation that the visitor they are billing holds a license issued past the Board.  This documentation could include a copy of the page the company is listed on from the Lath's dealer list.  An entity that tows a motor vehicle for a repossession company that is not a licensed motor vehicle dealer is providing taxable motor vehicle towing.

Are towing companies that charge for cleanup or for off-loading a disabled vehicle required to collect sales revenue enhancement on such charges?

No. The charges for off-loading and cleanup of the wreckage site are not taxable provided such charges are separately itemized on the billing invoice or separately invoiced and such statement is not used as a ways of fugitive the imposition of the sales revenue enhancement upon the actual charge for the towing service.

Motor Vehicle Painting

I am a motorcar dealer. When I take my inventory vehicles to accept them touched upwardly, re-striped, airbrushed, etc., am I supposed to pay sales tax to my vendors?

Are motor vehicle painting services which are billed to a Common or Contract Carrier subject to sales tax?

Motor Vehicle Washing and Waxing

Tin I purchase my soap, wax, and other supplies for resale?

No. You are the consumer of all materials and supplies used in providing your washing and waxing services, and must pay sales or utilize tax on all purchases of such materials and supplies used to provide your service.

Do gross receipts from providing coin-operated motor vehicle washing and waxing services include coin-operated vacuuming?

No, provided the vacuuming receipts are accounted for separately.

Our nonprofit organization is conducting a machine wash to heighten funds for a camping trip. Is this a taxable service?

The gross receipts from motor vehicle washing services are taxable. If your nonprofit organization chooses not to set a fee or charge for its motorcar wash and will have a gratuitous-will donation, the free-volition donation is not taxable. The organization must post a sign that states "free-will donations accepted." If the arrangement charges a specific amount for washing, it must take a sales tax allow and collect sales tax on the amount charged for washing the vehicles.

Our church is conducting a car wash to raise funds for the organization. Is this a taxable service?

In addition to the above answer on free-volition donations, a religious organization may have one auction a year that is not taxed. The auction may last up to iii consecutive days. (See Sales and Use Tax Regulation i-091.07B). A machine wash with a set charge could be conducted during the once a year auction without collecting taxation.

Our school is conducting a car wash to heighten funds for a ring trip. Is this a taxable service?

If a school or school grouping conducts a car wash, and the proceeds from the motorcar wash are used to support school activities or the schoolhouse itself, the service is not taxable fifty-fifty if a specific charge is set for the car wash. (See Sales and Utilize Tax Regulation 1-092)

Can a motor vehicle dealer purchase detailing services for resale?

No. A motor vehicle dealer must pay tax on detailing services purchased for any of its inventory vehicles.

Security Services

I accidentally locked my keys in the car and chosen a locksmith to open the vehicle for me. Is this a taxable security service?

No. This is not considered a taxable security service.

Are security services contracts in effect prior to October 1, 2002, subject field to tax?

Sales tax applies to all payments for security services recorded as a auction on and afterwards October one, 2002.

Are charges for monitoring services for patients or residents of a nursing domicile discipline to tax?

No. Nursing homes and other healthcare facilities are not retailers of security services.

Are charges for in-abode health care monitoring services bailiwick to tax?

Yes. Charges for in-abode medical and panic alarm monitoring services are field of study to tax.

Are off-duty law officers who only provide traffic control services providing security services?

No. However, if the officer is providing traffic control services and too has other security service responsibilities for which he or she is being paid, the total amount charged is taxable.

Are off-duty police officers required to obtain a sales tax permit if they only provide security services to organizations or entities that are exempt from paying sales and use taxes?

Practise security services include the installation of the security system wires and monitoring equipment?

No. All security system wires and equipment (parts) that are annexed must be taxed based on the installer's contractor option. A definition of "annexed" is available in Nebraska Sales and Utilise Tax Regulation 1-017.02A.

All security system wires and equipment (parts) that are installed and remain tangible personal property after installation are retail sales, and the total amount charged for such items and installation is subject area to sales tax.

If the installation of a security system involves the installation of both tangible personal property and building materials that are annexed for one corporeality, the full amount charged (materials and labor) is field of study to sales tax.

Is a business organization which provides security services required to collect sales tax on the charge to repair the security system?

Computer Software and Preparation

I exercise non sell computer software, but I provide grooming in the use of various canned software applications which are purchased "off the shelf." Must I charge tax on my computer software training services?

No. Your training services are taxable only if y'all as well sell the computer software.

Animal Specialty Services

Are charges for medicated baths taxable?

Charges for medicated baths for livestock are not taxable. Livestock is defined as domesticated cattle, horses, mules, donkeys, sheep, and swine.

Charges for medicated baths for animals other than livestock, are taxable unless performed past a veterinarian or veterinary technician, equally a part of a medical handling of the animal.

Are charges for shearing or grooming animals taxable?

Charges for shearing or preparation livestock are not taxable. Livestock is divers as domesticated cattle, horses, mules, donkeys, sheep, and swine.

Charges for shearing or grooming animals other than livestock are taxable unless performed past a veterinarian or veterinary technician as a role of a medical handling of the animal.

Are charges for rendering or disposal of livestock taxable?

Charges for rendering or disposal services of livestock are not taxable. Refer to the previous respond for a definition of livestock. All rendering or disposal charges for animalsother than livestock aretaxable.

Detective Services

I am a licensed private detective hired to repossess a car. Is this service taxable?

Yes. However, if the service is provided by someone other than a licensed detective the charge is not taxable.

I am a licensed individual detective hired to investigate the cause of a burn down. Is this service taxable?

If a licensed private detective or detective agency is hired to decide the cause of a fire, the accuse is taxable.

I am a licensed private detective hired past an exempt governmental agency or exempt organization. Are charges billed to these entities subject field to revenue enhancement?

Charges billed by a detective or detective bureau to an exempt governmental agency or exempt arrangement are not taxable, provided the customer bug a properly completed Nebraska Resale or Exempt Sale Certificate, Course 13. For boosted information regarding exempt governmental units and exempt organizations see Nebraska Sales and Apply Tax Regulations i-072, i-090, 1-091, i-092, and 1-093.

My individual investigative concern is located in Omaha and I am hired to "follow" a person who lives in Lincoln. What metropolis sales tax is collected?

Detective services are taxed at thecustomer'southward primary residential or business address in this state, regardless of the detective agency's location or the place(s) the detective goes in performing its service.

If I perform investigative services but am not a "licensed" detective, are my services bailiwick to sales tax?

No. However, Nebraska Revised Statute Section 71-3202, requires individuals and businesses performing private detective services to exist licensed with the Nebraska Secretary of State'southward Private Detective Partition.

I am a licensed private detective hired past an out-of-land client to serve papers to a person in Nebraska, is this taxable?

Detective services are taxed at thecustomer's primary residential or business accost in this state. Since the client is located outside this country, the detective's services are not taxable.

I am a licensed private detective hired past a Nebraska resident to serve papers to a person who is outside of Nebraska, Is this taxable?

Detective services are taxed at theclient's primary residential or business organization address in this state. Since the customer is located in this land, the detective's services are taxable.

Recreational Vehicle (RV) Park Services

Do RV park services include charges for the rental or lease of a site for a mobile abode that is annexed to real property?

No. A mobile dwelling annexed to real property is non considered a recreational vehicle.

If I operate an RV park that has a dissever RV storage surface area, is the charge for storage taxable?

No, as long as the RV is parked in the separate storage expanse. However, if the RV is actually parked at a pad site instead of in the storage surface area, the charge would be subject to tax.

Repair or Maintenance Services

Are charges for repairing tires used on a licensable motor vehicle taxable?

No. Charges for repairing tires used on a licensable motor vehicle are exempt from revenue enhancement whether or not the tire is on the vehicle at the time of repair. Charges to repair tires that are not for a licensable motor vehicle are taxable.

Are charges to restore or refinish (pigment or stain) tangible personal property such as appliances and furniture taxable?

Are charges for repairing and maintaining musical instruments, such as pianos, taxable?

Are charges for gunsmith services taxable?

Are charges for dry out cleaning and laundering clothes taxable?

Charges for cleaning and laundering clothes are considered restoration services and are non taxable. However, charges for alterations and repairs such equally mending or replacing a button are taxable. Meet Nebraska Sales and Utilise Revenue enhancement Regulation 1-048.

Are charges for sharpening tools and equipment taxable?

Are charges for the re-scale of machinery and equipment taxable?

I am hired to perform tests on machinery or equipment to determine if information technology is functioning properly. Are these testing charges taxable?

No. Services performed to just test machinery or equipment are not considered taxable repair or maintenance labor. However, if any repairs are made to the machinery or equipment, the total amount charged, including the charge for testing, is taxable.

Source: https://revenue.nebraska.gov/about/frequently-asked-questions/sales-tax-certain-services-faqs

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